The Economic Comission for Latin America and the Caribbean (ECLAC) has published its international outlook for the region for 2009 (Spanish download here). It includes an overview of  the policy  challenges facing the Brazilian bioenergy industry in light of anticipated growth of the sector.

For Latin America and the Caribbean as a whole, 2009 will be characterized by a lack of availability of external finance, as well as rising interest rates, inflation and unemployment.

In the medium term ECLAC urges countries to work harder to diversify their exports and promote public private partnerships as a means to increase innovation and  competitiveness.

Citing the world-leading ethanol industry in Brazil, the Comission states that as the sector grows, in line with the growing global demand for Brazilian biodiesel and the elimination of US tariffs in 2009, several key measures need to be adopted including:

1. The resolution of land rights issues and territorial planning disputes.

2. Deconcentration of the bioenergy industry, based around a regional development strategy ensuring that gains are widespread.

3. Greater state sponsorship of research and development and the transferal of technology.

4. Promotion of private sector incentives that encourage high standards of corporate governance and social responsibility.

5. Strengthening of efficiency requirements related to environmental degradation.